With the economy in the condition it is, banks and lending organizations are tightening their grip on the money they are willing hand out. If I was a loan officer, one organization I would consider extremely risky and would deny for lending is the Commonwealth of Kentucky.
Here are four reasons why I wouldn't give a business loan to Kentucky...
- Current financial standing: Kentucky is broke! The state has too many outstanding financial obligations including unfunded liabilities from the federal government and an incredibly under-funded state pension system.
- Lack of business plan: Come on, guys. Don't walk into my office and ask me for money without a plan! The General Assembly just spent thousands of tax payer dollars to meet for an additional session because they can't agree on how to make their state government more efficient and spend within their means. To my knowledge, they never really solved the problem
- Weak leadership in corporate office: A budget proposed by the CEO of Kentucky that planned on raising a significant amount of revenue from a risky, not-yet-legal expanded gaming plan!? You can't plan on money from programs that haven't been approved by the legislature. Give me a break.
- Ineffective chain of command: Kentucky has too many middle managers more concerned with the success of their fiefdom and the longevity of their position than with the accountability and tough decisions that come with their job. Why would I give a loan to an organization that allows an employee whose department is failing to write their own criteria for a performance review!?
1 comment:
Great summary! The politicians should be so forthright. It does boil down to simple fundamentals and you hit them.
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